The process of planning, recording, analyzing, and interpreting financial information.
An equation showing the relationship among assets, liabilities, and owner’s equity.
Anything of value that is owned.
A formal written document that describes the nature of a business and how it will operate.
An account used to summarize the owner’s equity in a business.
Interest paid on an original amount deposited in a bank plus any interest that has been paid.
A person or business to whom a liability is owed.
Someone who owns, operates, and takes the risk of a business venture.
Financial rights to the assets of a business.
The principles of right and wrong that guide an individual in making decisions.
The cost of goods or services used to operate a business.
Financial reports that summarize the financial condition and operations of a business.
An amount paid for the use of money for a period of time.
An amount owed.
Net worth statement
A formal report that shows what an individual owns, what an individual owes, and the difference between the two.
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
A business owned by one person.
An increase in equity resulting from the sale of goods or services.
Sale on account
A sale for which payment will be received at at later date.
A business that performs an activity for a fee.
Any business activity that changes assets, liabilities, or owner’s equity.
Assets taken from the business for the owner’s personal use.
Amounts to be paid in the future for goods or services already acquired.
Amounts to be received in the future due to the sale of goods or services.
Chart of accounts
A list of accounts used by a business.
An amount recorded on the right side of an account.
An amount recorded on the left side of an account.
A business form ordering a bank to pay cash from a bank account.
The recording of debit and credit parts of a transaction.
A form describing the goods or services sold, the quantity, the price, and the terms of sale.
A form for recording transactions in chronological order.
Recording transactions in a journal.
A form on which a brief message is written to describe a transactions.
Determining that the amount of cash agrees with the accounting records.
A business form giving written acknowledgement for cash received.
A business paper from which information is obtained for a journal entry.
If a transaction has been improperly journalized and posted to the ledger, the incorrect journal entry should be corrected with an additional journal entry, called a correcting entry.
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
A ledger that contains all accounts needed to prepare financial statements.
A group of accounts.
Opening an account
Writing an account title and number on the heading of an account.
Transferring information from a journal entry to a ledger account.
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
An endorsement consisting only of the endorser’s signature.
A check which has been paid by the bank.
A petty cash on hand amount that is more than the recorded amount.
A petty cash on hand amount that is less than the recorded amount.
A bank account from which payments can be ordered by a depositor.
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
A bank form which lists the checks, currency, and coins an account holder is adding to a bank account.
A check that a bank refuses to pay.
Electronic funds transfer
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
A signature or stamp on the back of a check transferring ownership.
Non-sufficient funds check
A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
Petty cash slip
A form showing proof of a petty cash payment.
A check with a future date on it.
An endorsement restricting further transfer of a check’s ownership.
An endorsement indicating a new owner of a check.
A check that cannot be processed because the maker has made it invalid.
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